New Workers’ Comp. Medical Fee Schedule Set

Date: November 03, 2015

A new medical fee schedule for workers’ compensation claims are now in effect, thanks to an emergency action taken by the Alaska Workers’ Compensation Board action on October 29.
NFIB/Alaska actively worked for the passage of House Bill 316, which called for reform of the workers’ compensation fee schedule. The measure passed the Legislature unanimously. The aim was to hold down medical costs of Alaska’s workers’ compensation program, which have ranked among the highest in the nation. 
In 2012 Alaska ranked #1, in 2014 we ranked #5. The high cost for workers’ compensation has jeopardized the viability of many of Alaska’s small businesses. 
“Workers’ compensation premiums should not be the cause of eliminating businesses and jobs for Alaskans,” said NFIB/Alaska State Director Denny DeWitt. “Small businesses in Alaska appreciate the work of Representative Kurt Olson, the Medical Review Board, Labor and Workforce Development Commissioner Heidi Drygas, and the Workers’ Compensation Board for their work on these regulations. We are optimistic that these changes will result in premium savings for small employers.”
A review of the Medical Services Review Committee Medical Fee Schedule Recommendations by the National Council on Compensation Insurance suggests that Alaskans could expect a savings of 3.6 percent. This is a positive step in a program that is 145 percent of the median premium compared to all other states. The new medical fee schedule for workers’ compensation claims had been developed by the Medical Services Review Committee and reviewed by the Commissioner of Labor. 
“NFIB/Alaska understands and supports the purpose of our workers’ compensation program,” said DeWitt. “We need a program that ensures workers are assisted when injured and are effectively rehabilitated and returned to productivity as soon as possible and as economically as possible. We believe that the recently adopted regulations accomplish this goal.”
The new fee schedule, which should further reduce workers’ compensation costs, is based on updated methodology, which accounts for physician work, practice expense, and profession liability for each service rendered. Payments are calculated by multiplying the combined costs of a service by a conversion factor. This new schedule is subject to annual review and adjustment. 

Related Content: Small Business News | Alaska

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